Resideo Technologies (NYSE:REZI – Get Free Report) issued its earnings results on Tuesday. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.12, FiscalAI reports. The business had revenue of $727.00 million during the quarter, compared to analysts’ expectations of $712.64 million. Resideo Technologies had a return on equity of 17.79% and a net margin of 5.37%. The business’s revenue for the quarter was down 61.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.89 EPS.
Here are the key takeaways from Resideo Technologies’ conference call:
- Core-channel growth was broad-based: Revenue excluding OEM security rose 6% year over year, with growth in retail, OEM combustion, electrical distribution, and HVAC. Management said both volume and pricing contributed despite a challenging housing market.
- Profitability improved in Q3: Gross margin was 40.4%, and standalone adjusted EBITDA increased 5% to $154 million. Price increases and operational efficiencies helped offset inflation, including a $13 million year-over-year input-cost headwind.
- Resideo raised its full-year 2026 outlook after Q3 results came in near the high end of expectations: revenue is now forecast at $2.927–$2.947 billion and adjusted EBITDA at $614–$624 million. The company also repaid $1.1 billion of gross debt following the ADI spinoff.
- Near-term growth faces several headwinds: For Q4, the company expects revenue of $710–$730 million, with core-channel growth of flat to low single digits and OEM security revenue down about $30 million year over year. Fewer selling days, foreign-exchange pressure, SKU rationalization, ongoing inflation, and an expected lack of tariff refunds weigh on the outlook.
- Management is emphasizing branded products, innovation, and efficiency as a standalone company, including new product launches, Pro-IQ services, SKU rationalization, and plans to exit three underused manufacturing facilities. Executives said these initiatives are intended to support growth and margin expansion, though Pro-IQ monetization is not yet material.
Resideo Technologies Trading Down 3.3%
NYSE REZI opened at $19.38 on Wednesday. The business’s 50-day moving average price is $18.41 and its two-hundred day moving average price is $29.34. Resideo Technologies has a 12 month low of $15.90 and a 12 month high of $42.95. The firm has a market capitalization of $2.94 billion, a PE ratio of 8.58 and a beta of 1.58. The company has a current ratio of 2.22, a quick ratio of 1.41 and a debt-to-equity ratio of 1.41.
Wall Street Analysts Forecast Growth
Several research firms have recently weighed in on REZI. Zacks Research upgraded Resideo Technologies from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 13th. Oppenheimer reiterated an “outperform” rating on shares of Resideo Technologies in a research report on Thursday, August 13th. JPMorgan Chase & Co. started coverage on shares of Resideo Technologies in a report on Friday, August 7th. They set a “neutral” rating and a $30.00 target price on the stock. Weiss Ratings cut shares of Resideo Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday. Finally, Evercore initiated coverage on shares of Resideo Technologies in a research note on Monday, September 28th. They set an “outperform” rating and a $30.00 price target for the company. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Resideo Technologies currently has an average rating of “Moderate Buy” and an average price target of $31.75.
Get Our Latest Research Report on Resideo Technologies
Insider Activity
In related news, CEO Thomas Surran acquired 15,000 shares of the stock in a transaction dated Friday, August 14th. The stock was bought at an average cost of $20.46 per share, for a total transaction of $306,900.00. Following the completion of the transaction, the chief executive officer directly owned 338,573 shares of the company’s stock, valued at $6,927,203.58. The trade was a 4.64% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Joshua Foster acquired 15,317 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The stock was bought at an average cost of $20.58 per share, for a total transaction of $315,223.86. Following the completion of the purchase, the senior vice president owned 183,509 shares of the company’s stock, valued at $3,776,615.22. This trade represents a 9.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 41,245 shares of company stock valued at $848,115. Company insiders own 1.60% of the company’s stock.
Key Stories Impacting Resideo Technologies
Here are the key news stories impacting Resideo Technologies this week:
- Positive Sentiment: Third-quarter revenue was $727 million, up 3% year over year and above analyst expectations; revenue excluding OEM Security grew 6%. Adjusted diluted EPS of $0.52 also beat the $0.40 consensus, while gross margin expanded for a 14th consecutive quarter. Resideo Q3 2026 results and outlook
- Positive Sentiment: Resideo said it repaid $1.1 billion of gross debt during the quarter, leaving $2.1 billion outstanding. The reduction may help strengthen the balance sheet. Resideo Q3 2026 results and outlook
- Neutral Sentiment: The company launched Pro-IQ Predict, an AI-powered HVAC tool designed to identify potential system problems before breakdowns. It could support future product demand, though the near-term financial effect is unclear. Resideo launches Pro-IQ Predict
- Negative Sentiment: Weak 2026 guidance appears to be the main drag on the shares: Resideo forecast full-year revenue of $2.927 billion to $2.947 billion, and coverage characterized the outlook as disappointing. This overshadowed the quarterly sales and adjusted-EPS beats. Resideo Q3 sales beat but shares fall on guidance
- Negative Sentiment: Reported GAAP results were much weaker than adjusted figures: income from continuing operations fell 66% year over year to $31 million, and GAAP diluted EPS declined 71% to $0.14. Resideo Q3 2026 results and outlook
About Resideo Technologies
Resideo Technologies is a provider of products and services for home comfort, safety, security and energy management. Its offerings include thermostats and other heating and cooling controls, indoor air quality products, water leak detection devices, fire and carbon monoxide alarms, and security systems. Products are sold under brands that include Honeywell Home and First Alert. The company also operates ADI Global Distribution, a distributor of security, audio-visual, communications and smart-home products.
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